The profit-maximizing rule for a monopolistically competitive firm is to select the quantity at which
A) average revenue equals average total cost.
B) price equals marginal cost.
C) average revenue exceeds marginal cost by the greatest amount.
D) marginal revenue equals marginal cost.
D
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Which of the following statements about the classical model of the economy is FALSE?
A) Individuals pursue the public interest, not their own self-interest. B) The economy will always move toward, or be at, full employment. C) Savings and investment will always be equal. D) Wages and prices are flexible.
When an investment bank ________ securities, it guarantees a price for a corporation's securities and then sells them to the public
A) underwrites B) undertakes C) overwrites D) overtakes
The lag length in a VAR using the BIC proceeds as follows: Among a set of candidate values of p, the estimated lag length xxxis the value of p
A) For which the BIC exceeds the AIC B) That maximizes BIC(p) C) Cannot be determined here since a VAR is a system of equations, not a single one D) That minimizes BIC(p)
In the long run under perfect competition, all firms in the same market
a. earn the same money profit b. have the same opportunity costs c. earn the same economic profit d. face the same explicit costs e. earn the same money profit and the same economic profit